- 9 - no other documentation for these transactions. Other payments were evidenced by contracts, leases, and buy-sell agreements, which Shindel reviewed. Lacking expertise in foreign tax matters, Shindel made inquiries in order to determine the tax obligations arising from these payments. He received the impression that Tompkins, who was preparing most of the tax returns at that time, was not knowledgeable about the reporting and withholding requirements for payments to foreign persons. Nor was Shindel satisfied that his clients were sufficiently sophisticated to determine the applicable requirements. He sought expert advice from two outside attorneys, one a senior tax partner at a Michigan law firm and the other a tax partner at a Washington, D.C., firm. His consultations with these attorneys concerning the payments at issue began either in early 1990 or in late 1991 or 1992. The attorneys advised him orally of their views; neither furnished Shindel a written opinion. Shindel advised Modern of the problems he had identified. Petitioners made no further payments to the related foreign corporations after 1991. Meanwhile, the IRS began an audit of several of petitioners in 1990. The audit was conducted on Modern's premises by Revenue Agent Berniece Petzold (Petzold). In the late winter or early spring of 1993 Petzold questioned Shindel regarding certain canceled checks she had found that had been cashed abroad. They discussed the reporting requirements applicable to thesePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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